7:14 Week 3 - Assignment A 1. EX.06.05 2. EX.06.08.ALGO 3. EX.06.09.ALGO 4. EX.06.10.ALGO 5. EX.06.02...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
7:14 Week 3 - Assignment A 1. EX.06.05 2. EX.06.08.ALGO 3. EX.06.09.ALGO 4. EX.06.10.ALGO 5. EX.06.02 Progress: 4/5 items Contribution Margin and Contribution Margin Ratio For a recent year, McDonald's (MCD) company-owned restaurants had the following sales and expenses (in millions): Sales Food and packaging Payroll Occupancy (rent, depreciation, etc.) $35,000 $(11,910) (8,800) (8,140) General, selling, and administrative expenses (5,100) $(33,950) Operating income $1,050 Assume that the variable costs consist of food and packaging, payroll, and 40% of the general, selling, and administrative expenses. a. What is McDonald's contribution margin? Round to the nearest million. (Give answer in millions of dollars.) $ million b. What is McDonald's contribution margin ratio? % c. How much would operating income increase if same- store sales increased by $2,100 million for the coming year, with no change in the contribution margin ratio or fixed costs? Round your answer to the closest million. million Previous Next Assignment Score: 0.0% All work saved. Save and Exit Submit Assignment for Grading AA v2.cengagenow.com 7:12 1 Week 3 - Assignment A 1. EX.06.05 .. 2. EX.06.08.ALGO 3. EX.06.09.ALGO 4. EX.06.10.ALGO 5. EX.06.02 High-Low Method for a Service Company Continental Railroad decided to use the high-low method and operating data from the past six months to estimate the fixed and variable components of transportation costs. The activity base used by Continental Railroad is a measure of railroad operating activity, termed "gross-ton miles," which is the total number of tons multiplied by the miles moved. Progress: 2/5 items January February March April May June Transportation Costs Gross-Ton Miles $1,053,500 301,000 1,174,600 336,000 830,100 218,000 1,126,100 326,000 944,500 262,000 1,210,900 354,000 Determine the variable cost per gross-ton mile and the total fixed cost. Variable cost (Round to two decimal places.) Total fixed cost per gross-tor Previous Next Assignment Score: 0.0% All work saved. Save and Exit Submit Assignment for Grading AA v2.cengagenow.com 7:13 1 Week 3 - Assignment A 1. EX.06.05 2. EX.06.08.ALGO 3. EX.06.09.ALGO 4. EX.06.10.ALGO 5. EX.06.02 Progress: 3/5 items Contribution Margin Ratio a. Young Company budgets sales of $870,000, fixed costs of $48,900, and variable costs of $217,500. What is the contribution margin ratio for Young Company? % b. If the contribution margin ratio for Martinez Company is 70%, sales were $887,000, and fixed costs were $440,840, what was the operating income? Previous Next Assignment Score: 0.0% All work saved. Save and Exit Submit Assignment for Grading AA v2.cengagenow.com 7:14 Week 3 - Assignment A 1. EX.06.05 2. EX.06.08.ALGO 3. EX.06.09.ALGO 4. EX.06.10.ALGO 5. EX.06.02 Progress: 4/5 items Contribution Margin and Contribution Margin Ratio For a recent year, McDonald's (MCD) company-owned restaurants had the following sales and expenses (in millions): Sales Food and packaging Payroll Occupancy (rent, depreciation, etc.) $35,000 $(11,910) (8,800) (8,140) General, selling, and administrative expenses (5,100) $(33,950) Operating income $1,050 Assume that the variable costs consist of food and packaging, payroll, and 40% of the general, selling, and administrative expenses. a. What is McDonald's contribution margin? Round to the nearest million. (Give answer in millions of dollars.) $ million b. What is McDonald's contribution margin ratio? % c. How much would operating income increase if same- store sales increased by $2,100 million for the coming year, with no change in the contribution margin ratio or fixed costs? Round your answer to the closest million. million Previous Next Assignment Score: 0.0% All work saved. Save and Exit Submit Assignment for Grading AA v2.cengagenow.com 7:12 1 Week 3 - Assignment A 1. EX.06.05 .. 2. EX.06.08.ALGO 3. EX.06.09.ALGO 4. EX.06.10.ALGO 5. EX.06.02 High-Low Method for a Service Company Continental Railroad decided to use the high-low method and operating data from the past six months to estimate the fixed and variable components of transportation costs. The activity base used by Continental Railroad is a measure of railroad operating activity, termed "gross-ton miles," which is the total number of tons multiplied by the miles moved. Progress: 2/5 items January February March April May June Transportation Costs Gross-Ton Miles $1,053,500 301,000 1,174,600 336,000 830,100 218,000 1,126,100 326,000 944,500 262,000 1,210,900 354,000 Determine the variable cost per gross-ton mile and the total fixed cost. Variable cost (Round to two decimal places.) Total fixed cost per gross-tor Previous Next Assignment Score: 0.0% All work saved. Save and Exit Submit Assignment for Grading AA v2.cengagenow.com 7:13 1 Week 3 - Assignment A 1. EX.06.05 2. EX.06.08.ALGO 3. EX.06.09.ALGO 4. EX.06.10.ALGO 5. EX.06.02 Progress: 3/5 items Contribution Margin Ratio a. Young Company budgets sales of $870,000, fixed costs of $48,900, and variable costs of $217,500. What is the contribution margin ratio for Young Company? % b. If the contribution margin ratio for Martinez Company is 70%, sales were $887,000, and fixed costs were $440,840, what was the operating income? Previous Next Assignment Score: 0.0% All work saved. Save and Exit Submit Assignment for Grading AA v2.cengagenow.com
Expert Answer:
Related Book For
An Introduction To Statistical Methods And Data Analysis
ISBN: 9781305465527
7th Edition
Authors: R. Lyman Ott, Micheal T. Longnecker
Posted Date:
Students also viewed these finance questions
-
Overtime income may be considered for an hourly employee: Only if it is being paid in the same paycheck If the earnings have been reported as wages If it has been consistent for at least two years...
-
6. 12.6 Ganado GermanyAll Domestic Competitors. Using the Ganado Germany analysis in Exhibits12.5and 12.6 where the euro depreciates, how would prices, costs, and volumes change if Ganado Germany was...
-
uiet inhalation is produced by contraction of the: Question 38Answer a. Diaphragm and external intercostals b. Diaphragm and internal intercostals c. Diaphragm d. Internal and external intercostals
-
The advantages of the computerized conversion process model " What is the EOQ model? (For self-study and research) What is JIT? (Self study and research) A firm expects to sell 2000 units of its...
-
Read News Story 19, Young romance may lead to depression, study says and use it to answer these questions. a. How many participants were there in this study? b. The story actually reports the...
-
Dominic Builders builds 1,500-square-foot starter tract homes in the fast-growing suburbs of Atlanta. Land and labor are cheap, and competition among developers is fierce. The homes are...
-
A call option sells for $4. It has a strike price of $40 and six months to maturity. If the underlying stock currently sells for $30 per share, what is the price of a put option with a $40 strike and...
-
Chesterfield Company has cash of $60,000, inventory worth $110,000, and a building worth $140,000. Unfortunately, the company also has accounts payable of $190,000, a note payable of $90,000 (secured...
-
is equal to Alnr + Bln s where A = and where B Question Help: Video Calculator
-
A _____________________ removes _____________________ from the current ratio's calculation. Group of answer choices ROI ratio; capital improvements Inventory turnover ratio; cost of goods sold Quick...
-
On February 21, 2021, Prosperous Company exchanged machinery for other machinery owned by Twilight Corporation. Information pertaining to the machinery given up by Prosperous Company in the exchange...
-
1. For the plane truss shown in the figure below, determine the following: a. Force in member BF. b. Force in member DG. c. Force in member DH. A 1 kN 3m B 2010 FITT cable 3m cable cable 3 kN cable...
-
what were the unexpected marketing aspects that were redefined in the age of Covid-19? 2- Specifically, what do you think the author tries to convey to the digital marketer when she says: "Old truth:...
-
Mr. Smith and Mrs. Jones each own their own cleaning companies. They are considering renting a commercial vacuum cleaner to share between their two businesses. Mr Smith requires the vacuum for a...
-
er 3 (3) - Word erences Mailings Review View Help COST-VOLUME-PROFIT CHART Revenues Variable Contribution Fixed Costs Margin Costs Operating Taxes@ Income 20% Net Income 10,000 8,000 2,000 1,500 500...
-
Do you think that Goggle is a monopoly? Why or why not?
-
Is the modified 5-question approach to ethical decision making superior to the modified moral standards or modified Past in approach?
-
Is the of a diversified conglomerate close to 1? Why?
-
As a result of a change in the nature of its business, there is a relative rise in the proportion of fixed costs in a group As total costs. Will this affect the risk attached to its share price? If...
-
What law of statistics explains that in the long term, risk disappears? State your views.
Study smarter with the SolutionInn App